What To Expect From Sterling’s (STRL) Q3 Earnings

Civil infrastructure construction company Sterling Infrastructure (NASDAQ:STRL) will be announcing earnings results this Monday after the bell. Here’s what to look for.

Sterling beat analysts’ revenue expectations by 10.8% last quarter, reporting revenues of $614.5 million, up 5.4% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.

Is Sterling a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Sterling’s revenue to grow 4.2% year on year to $618.8 million, slowing from the 6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.84 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sterling has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time since going public by 8.1% on average.

Looking at Sterling’s peers in the construction and engineering segment, some have already reported their Q3 results, giving us a hint as to what we can expect. MasTec delivered year-on-year revenue growth of 22%, beating analysts’ expectations by 1.6%, and EMCOR reported revenues up 16.4%, in line with consensus estimates. MasTec traded down 4.6% following the results while EMCOR was also down 13%.

Read our full analysis of MasTec’s results here and EMCOR’s results here.

Investors in the construction and engineering segment have had steady hands going into earnings, with share prices flat over the last month. Sterling is up 9.4% during the same time and is heading into earnings with an average analyst price target of $355 (compared to the current share price of $381.99).

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